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Stages of Globalization – Domestic → International → Multinational → Global

Firms generally pass through stages of internationalisation as they expand.

1. Domestic Stage

  • Firm sells mainly in home country.
  • Focus on domestic customers and competitors.
  • Limited awareness of foreign markets.

2. International Stage (Exporting)

  • Firm starts exporting surplus production to other countries.
  • May use agents or distributors abroad.
  • Limited customisation for foreign markets.

3. Multinational Stage (MNC)

  • Firm sets up subsidiaries or production units in several countries.
  • Adapts products and strategies to local conditions.
  • Example: Fast‑food chains modifying menu for Indian tastes.

4. Global/Transnational Stage

  • Firm views the world as one market.
  • Integrates production, R&D and marketing globally.
  • Seeks global efficiency + local responsiveness.

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5. Case Study – Indian Pharmaceutical Company

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6. Quick Revision Points

  • Stages: Domestic → International → Multinational → Global.
  • Each stage increases commitment of resources and complexity.
  • Global firms balance efficiency and local responsiveness.

7. Quiz Time 🎯

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